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Caitlin and her younger sister Victoria were raised in Melbourne, Victoria. Their parents, David and Sally, are originally from Norwich, England. Sally is a primary school drama teacher at Sandringham Primary School in Melbourne. At age seven Caitlin spent almost a year living in Norwich, and her grandparents were still living in the city in 2008. Stasey attended Star of the Sea College. In 2000, at the age of 10, she travelled the world as a member of the Australian Girls Choir, and took part in a re-recording of Peter Allen's "I Still Call Australia Home", for a Qantas commercial.==
On 3 March 2012, Stasey and her sister were attacked by a group of teenage females near Mentone. Conflicting reports from news outlets place the location of the incident either aboard a Melbourne train or in Mentone Village. Stasey said that the incident was terrifying but she was fine. She called for harsher punishments for young people who commit violent crimes.

Stasey made a career breakthrough in September 2003 when she was cast in the children's TV series The Sleepover Club, playing Francesca 'Frankie' Thomas, the self-appointed leader of the club. Stasey made a brief return to the character of Frankie, in the second series of The Sleepover Club in 2006.After a year studying and attending auditions, in April 2005 Neighbours casting director Jan Russ cast her as Rachel Kinski. Her first episode was aired on the 18 August. Stasey left Star of the Sea College after landing the part of Rachel, but continued to study on a distance education programme. In September 2008, Stasey announced in an interview to the Herald Sun that she would be leaving Neighbours in the coming weeks, primarily to concentrate on her end of year VCE exams. The producers stated that her character would not be 'killed-off', allowing Stasey the chance to return. Stasey said "I want to know that when I finish my exams and get my score, it is representative of my abilities, my exams start in November and I want to be able to give them my full concentration."In 2008, Stasey was chosen to star in the movie adaption of the teen novel, Tomorrow, When the War Began as the lead character Ellie Linton, a teenage girl who documents her time with a group of friends fighting the invasion of Australia (Stewart Jones). During 2008, Stasey was linked to the live action film of video game/comic series Wonder Boy. However, it was shut down by Sega. Robin Morningstar revived the project as a CGI movie, but Stasey withdrew to be in the film adaptation Tomorrow, When the War Began. Her CGI character, although with a new voice, retains her face. In December 2008, she appeared in the Christmas pantomime Snow White at Norwich Theatre Royal. In 2009, Stasey appeared in a 5 minute short, "Many Australians One Nation", part of a program run by Panasonic. She appeared as herself, in a courtroom scene, stating that a certain "Jasminda Goupta" wasn't Australian. Her evidence of this was that, "[Jasminda] [didn't] listen to Men at Work", "Watch Hamish and Andy" and "[didn't] even watch Neighbours". Stasey appeared in the film, by Sandringham Primary School students as her mother was a drama teacher at the school.